Tanya Davidson
Port Harcourt — The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has cautioned that rising domestic refining capacity will not automatically translate into lower petrol prices, arguing that crude oil remains a globally traded commodity.
Lokpobiri, however, said increased refining capacity would intensify competition among domestic refiners and could allow market forces to influence petroleum product prices in the interest of Nigerians.
The Minister spoke while appearing on a live television show, Politics Today, monitored by our correspondent in Port Harcourt.
“It is pertinent, however, to recognize the nature of crude oil as a global commodity; therefore, increased refining capacity does not, by itself, translate to independent pricing,” he said.
“Granted, the competition it will drive will invariably create market forces that can influence prices in the interest of Nigerians,” the minister added.
His comments come amid efforts by the Federal Government, through the Nigerian National Petroleum Company Limited, NNPC, to rehabilitate the country’s existing state-owned refineries and encourage private-sector refining investments.
Lokpobiri said the administration of President Bola Tinubu had also removed bureaucratic bottlenecks around refinery licensing, enabling new private refineries to secure licences.
He said government incentives and reforms were unlocking fresh investment across Nigeria’s oil and gas industry, citing the $550 million Ubeta development, $5 billion Bonga North project, Shell’s $2 billion HI development and the recently signed $600 million AMNI/TotalEnergies Ima Gas project.
“We have seen commitments including Ubeta ($550 million), Bonga North ($5 billion), Shell’s HI development ($2 billion) and the recently signed AMNI/TotalEnergies JV IMA Project ($600 million), with further investments emerging,” Lokpobiri said.
The minister said the combination of refinery investment, upstream developments and regulatory reforms was strengthening Nigeria’s petroleum industry and creating conditions for increased production and domestic value creation.
